Clip raises $1.5m to become Mexico's Square

Clip raises $1.5m to become Mexico's Square

With $1.5 million in funding secured, Clip, a Square clone targeting the Spanish-speaking world, is preparing to launch in Mexico.

Clip comprises a free app and an encrypted card reader which small scale merchants can plug into the headphone jack of iOS and Android devices.

To use it, the amount to be charged is entered into the app and the card is swiped. The cardholder is then asked for their phone number and receive a four digit SMS code that they enter on the Clip app. If the code matches, the customer signs and receives their receipt via SMS or email.

Founded by PayPal veteran Adolfo Babatz, the company has raised $1.5 million in funding from investors that include 500 Startups, Alta Ventures, ACCION, and Karl Mehta.

Clip plans to launch in Mexico where, it claims, only 400,000 merchants out of a total 5.5 million, currently accept cards. Other Spanish-speaking countries, and the US Hispanic market, will follow.

Says Babatz: "Today, a merchant in Mexico needs to go through more than 35 steps to get a POS terminal. Furthermore, if you are an individual, you simply won't get a terminal. Clip cuts that process into two simple steps."

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